Correlation Between APT Medical and Bank of China
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By analyzing existing cross correlation between APT Medical and Bank of China, you can compare the effects of market volatilities on APT Medical and Bank of China and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in APT Medical with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Bank of China.
Diversification Opportunities for APT Medical and Bank of China
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between APT and Bank is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China and APT Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on APT Medical are associated (or correlated) with Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of APT Medical i.e., APT Medical and Bank of China go up and down completely randomly.
Pair Corralation between APT Medical and Bank of China
Assuming the 90 days trading horizon APT Medical is expected to generate 32.0 times less return on investment than Bank of China. In addition to that, APT Medical is 3.12 times more volatile than Bank of China. It trades about 0.0 of its total potential returns per unit of risk. Bank of China is currently generating about 0.18 per unit of volatility. If you would invest 483.00 in Bank of China on August 31, 2024 and sell it today you would earn a total of 18.00 from holding Bank of China or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Bank of China
Performance |
| Timeline |
| APT Medical |
| Bank of China |
APT Medical and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Bank of China
The main advantage of trading using opposite APT Medical and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Bank of China can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bank of China will offset losses from the drop in Bank of China's long position.| APT Medical vs. PetroChina Co Ltd | APT Medical vs. China Mobile Limited | APT Medical vs. Ping An Insurance | APT Medical vs. China Petroleum Chemical |
| Bank of China vs. Tianjin Hi Tech Development | Bank of China vs. Dazhong Transportation Group | Bank of China vs. Hubeiyichang Transportation Group | Bank of China vs. Guangdong Shenglu Telecommunication |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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